Last week, Illinois Congressman Luis Gutierrez asked Federal Reserve Board Chairman Ben Bernanke a question many American consumers have probably been pondering. Gutierrez asked Bernanke why mortgage rates weren't falling along with the Fed's cuts to interest rates.

The Fed Chairman gave the congressman part of the answer. Bernanke explained that the credit markets had created greater spreads, especially for risky buyers. Economists say that means many lenders, burned by foreclosures and mortgage delinquencies, are building risk premiums into mortgage rates. Additionally, there has been a lot of volatility in the ten-year treasury bond, and longer-term mortgages are tied to those instruments.

Unfortunately, some consumers still might not be able to refinance even if interest rates on 30-year fixed rate loans fall. Soaring foreclosure rates and the stagnant housing market have brought down home values in many areas. That means that many consumers have less equity in their homes. A lack of home equity could prevent some from refinancing.

Russ Haraus, who heads the risk management committee for the Illinois Mortgage Bankers Association, says increasingly many consumers can't get through the refinancing application process. Haraus says often lenders will eliminate prospective customers during the process because they find those consumers have too much credit card debt.

In the early part of this decade, refinancing was a relatively easy process and many homeowners, myself included, could refinance fairly easily. It could be awhile before we return to those times.